U.S. closes investigation of Delta’s Virgin investment

Friday, June 21, 2013

The U.S. Justice Department’s Antitrust Division announced Thursday it has closed an investigation into Delta Air Lines’ proposed equity investment in Virgin Atlantic Airways and their related transatlantic joint venture.
“After a thorough investigation of the competitive effects of the proposed equity investment and joint venture, the Antitrust Division concluded that the facts and circumstances did not warrant further investigation or action,” the department said.
In December 2012, Delta and Virgin Atlantic reached an agreement to establish a joint venture on flights between North America and the United Kingdom. At the same time, Delta entered an agreement to acquire the 49 percent stake in Virgin Atlantic currently held by Singapore Airlines for $360 million. Virgin Group will retain the majority 51 percent stake.
The European Commission also reviewed the proposed equity investment and joint venture, and found no reason for stopping it.
“The division and the European Commission cooperated closely throughout the course of their respective investigations, with frequent contact between the agencies. This cooperation, facilitated by the parties, made for a more efficient review process,” the Justice Department said.
Delta and Virgin Atlantic also have filed an application with the U.S. Transportation Department seeking antitrust immunity for their joint venture. The Justice Department said its Antitrust Division will continue to consult, as necessary, with DOT as it reviews the request for immunity.